President Ibrahim Mohamed Solih has stated that the government will soon propose solutions to reduce rent on Hiyaa flats.
At a press conference, President Solih said the government has been holding discussions on reducing rent for tenants of the Hiyaa flats and has decided to propose solutions that would not negatively impact investors or the government.
Urbanco stated that it has held discussions with the President’s Office and Ministry of National Planning, Housing, and Infrastructure regarding the issue. The state-owned company assured that the solutions will be favourable for tenants.
In March, President Solih met with non-governmental organisation (NGO) Hiyaa Rayyithunge Gulhun on reducing rent for tenants of the Hiyaa flats. During the meeting, President Solih put forth solutions such as reducing the rent for five years and repaying loans taken to complete the finishing works on the apartments. Other solutions included reducing rent for low-income families, reducing the rent on all tenants, and extending the government’s loan repayment period from 25 years to 30 years. Members of the NGO told the president they preferred a solution where rent is reduced for all tenants of the Hiyaa flats.
The Hiyaa flats consist of two-room apartments with USD551 rent, including the maintenance fee. Hiyaa Rayyithunge Gulhun noted that the rent for three-room apartments built under previous social housing projects was cheaper and that the purpose of the meeting was to ensure the same right to cheap housing for tenants of the Hiyaa flats.
According to the government, 40% of tenants are currently failing to pay their rent. Hiyaa Rayyithunge Gulhun stated that it encourages tenants to meet their rent obligations while highlighting that reducing rent could help increase compliance.